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Leveraged Deferred Compensation Strategy

Life insurance is a valuable financial planning solution that often requires large premium payments. Cash flow can become an issue. Many people find themselves asset rich, but cash poor. Their assets are illiquid. If that is your issue when considering the purchase of life insurance, it will more than likely be an issue for your family or business if you were to die prematurely – unless you have taken the steps necessary to implement a solid financial plan.


The Leveraged Deferred Compensation Strategy (LDCS) utilizes an Indexed Universal Life (IUL) contract offered by a top tier insurance company domiciled in the United States. In addition to a permanent death benefit, this strategy leverages loans from the policy’s cash value to provide tax-free income in retirement.


Cash value life insurance can be used to provide protection for your spouse, children, and other beneficiaries, in the event you die prematurely; and tax-deferred accumulation of cash values to provide income options for retirement or other needs and objectives such as legacy planning.


– Pre / Post Retirement Death Benefit

– Tax-Deferred Growth on Cash Value

– Tax-Free Retirement Income

– Creditor Protection (varies by state)


How it Works 

Step One


You work with a lender who analyzes your credit, and financial status to obtain loan approval. 

Step Two


All required loan information and your application for life insurance are approved by Insurance.

Step Three


Premiums are paid to insurance carrier with the approved loan from the lender. The policy 
value is used, along with other assets, as collateral for the loan. 

Step Four


Depending on the type of loan, the loan interest is paid in cash or capitalized.

Step Five


The loan is paid off using one or a combination of the following:


 1. Taking withdrawals and loans from the policy value,

 2. Using other assets, or

3. Using the life insurance death benefit to repay the loan.


The collateral assignment is released and is owned outright by the owner.

Step Six


The Policy will continue to grow on a tax-deferred basis. The policy can be used for tax-free income or income tax-free death benefit.

Demographics: Business owners under age 60 (excess of 5 mil in assets) and/or high-net-worth individuals (income in excess of $500k)

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